36696 Federal Register / Vol. 63, No. 129 /Tuesday, July 7, 1998 / Notices

results, conclusions, or interpretations

of any test, study, or research.

Paragraph IV of the proposed order

would prohibit for any food, dietary

supplement or drug the representation

that the experience represented by any

user testimonial or endorsement of the

product represents the typical or

ordinary experience of members of the

public who use the food, dietary

supplement or drug, unless: at the time

it is made, respondents possess and rely

upon competent and reliable scientific

evidence that substantiates the

representation; or respondents disclose

in the same language as the

predominant language that is used in

the advertisement, clearly and

prominently, and in close proximity to

the endorsement or testimonial, either

(1) what the generally expected results

would be for users of the food, dietary

supplement or drug, or (2) the limited

applicability of the endorser’s

experience to what consumers may

generally expect to achieve, that is, the

consumers should not expect to

experience similar results.

Part V and VI of the proposed order

contain provisions permitting certain

claims that are approved for labeling by

the FDA, either under the Nutrition

Labeling and Education Act, a tentative

or final standard or under any new drug

application approved by the FDA.

Part VII of the proposed order would

require proposed respondents to

disclose ‘‘THE PROGRAM YOU ARE

WATCHING IS A PAID

ADVERTISEMENT FOR [THE

PRODUCT OR SERVICE]’’ in television

advertisements fifteen (15) minutes in

length or longer, and to disclose a

similar audio message in radio

advertisements of fifteen (15) minutes in

length or longer.

Part VIII of the proposed order

contains record keeping requirements

for materials that substantiate, qualify,

or contradict claims covered by the

proposed order. Part IX of the proposed

order requires distribution of a copy of

the order to current and future officers

and agents. Part X provides for

Commission notification upon a change

in the corporate respondent and Part XI

requires Commission notification when

the individual respondent changes his

business or employment. Part XII

requires the proposed respondents to

keep and maintain all records

demonstrating compliance with the

terms and provisions of the order. Part

XIII provides for the termination of the

order after twenty years under certain

circumstances.

The purpose of this analysis is to

facilitate public comment on the

proposed order, and it is not intended

to constitute an official interpretation of

the agreement and proposed order or to

modify in any way their terms.

By direction of the Commission.

Benjamin I. Berman,

Acting Secretary.

[FR Doc. 98–17935 Filed 7–6–98; 8:45 am]

BILLING CODE 6750–01–M

FEDERAL TRADE COMMISSION

[File No. 981–0211]

Sky Chefs, Inc., et al.; Analysis To Aid

Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

SUMMARY: The consent agreement in this

matter settles alleged violations of

federal law prohibiting unfair or

deceptive acts or practices or unfair

methods of competition. The attached

Analysis to Aid Public Comment

describes both the allegations in the

draft complaint that accompanies the

consent agreement and the terms of the

consent order—embodied in the consent

agreement—that would settle these

allegations.

DATES: Comments must be received on

or before September 8, 1998.

ADDRESSES: Comments should be

directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pa. Ave., NW,

Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

Phillip Broyles, FTC/S–2105,

Washington, DC 20580. (202) 326–2805.

SUPPLEMENTARY INFORMATION: Pursuant

to Section 6(f) of the Federal Trade

Commission Act, 38 Stat. 721, 15 U.S.C.

46 and Section 2.34 of the Commission’s

Rules of Practice (16 CFR 2.34), notice

is hereby given that the above-captioned

consent agreement containing a consent

order to cease and desist, having been

filed with and accepted, subject to final

approval, by the Commission, has been

placed on the public record for a period

of sixty (60) days. The following

Analysis to Aid Public Comment

describes the terms of the consent

agreement, and the allegations in the

complaint. An electronic copy of the

full text of the consent agreement

package can be obtained from the FTC

Home Page (for June 29, 1998), on the

World Wide Web, at ‘‘http://

www.ftc.gov/os/actions97.htm.’’ A

paper copy can be obtained from the

FTC Public Reference Room, Room H–

130, Sixth Street and Pennsylvania

Avenue, NW, Washington, DC 20580,

either in person or by calling (202) 326-

3627. Public comment is invited. Such

comments or views will be considered

by the Commission and will be available

for inspection and copying at its

principal office in accordance with

Section 4.9(b)(6)(ii) of the Commission’s

Rules of Practice (16 CFR 4.9(b)(6)(ii)).

Analysis of Proposed Consent Order To

Aid Public Comment

I. Introduction

The Federal Trade Commission

(‘‘Commission’’) has accepted from Sky

Chef, Inc., and its parents, Onex

Corporation and Gerald W. Schwartz

(collectively ‘‘Proposed Respondents’’)

an Agreement Containing Consent Order

(‘‘Proposed Consent Order’’). The

Proposed Consent Order remedies the

likely anticompetitive effects in the

delivery of catering services to airlines

at McCarran International Airport in Las

Vegas, Nevada, that arise from the

proposed acquisition of Ogden Aviation

Food Services, Inc., by Proposed

Respondents.

II. Description of the Parties and the

Transaction

Sky Chefs, Inc., headquartered in

Arlington, Texas, provides catering

services to airlines in the United States

and abroad. Its parent company, Onex

Corporation, operates through a number

of other subsidiaries that are involved in

chain restaurant food service,

electronics manufacturing, and other

businesses. During 1997, Sky Chefs had

total revenues of over $1 billion.

Ogden Corporation, headquartered in

New York, is a global company

providing a wide range of services in the

aviation, entertainment, and energy

industries. Ogden’s wholly-owned

indirect subsidiary, Ogden Aviation

Food Services, Inc., and its whollyowned subsidiary, Ogden Aviation Food

Services (ALC), Inc., operate 11 kitchens

serving in-flight food to more than 85

airlines at a number of locations,

including eight major U.S. airports.

Revenues for in-flight catering in 1997

are reported at $164 million.

On March 6, 1998, the parties signed

a letter of intent contemplating that Sky

Chefs, Inc., would purchase 100% of the

voting common stock of Ogden Aviation

Food Services, Inc., from Ogden

Corporation. On May 7, 1998, the

parties signed a stock purchase

agreement that excluded the assets of

Ogden’s Las Vegas flight kitchen. On

May 22, 1998, Ogden entered into an

agreement to sell the Las Vegas flight

kitchen to Dobbs International Services,

Inc.
Federal Register / Vol. 63, No. 129 /Tuesday, July 7, 1998 / Notices 36697

III. The Proposed Complaint and

Consent Order

The Commission has entered into an

agreement containing a Proposed

Consent Order with Proposed

Respondents in settlement of a proposed

complaint alleging that the acquisition

as originally proposed violates Section 5

of the Federal Trade Commission Act,

15 U.S.C. 45, and that consummation of

the acquisition as originally proposed

would violate Section 7 of the Clayton

Act, 15 U.S.C. 18, and Section 5 of the

Federal Trade Commission Act. The

complaint alleges that the acquisition

will lessen competition in the delivery

of catering services to airlines at

McCarran International Airport in Las

Vegas, Nevada.

To remedy the alleged

anticompetitive effects of proposed

acquisition, the Proposed Consent Order

prohibits Proposed Respondents, for ten

(10) years after the consent order

becomes final, from acquiring any

concern that controls Ogden’s Las Vegas

catering operations without prior

approval from the Commission. It also

requires that, for ten (10) years,

Proposed Respondents provide prior

notice to the Commission before

acquiring their only in-flight catering

competitor at any airport in the United

States.

Proposed Respondents are required to

file annual compliance reports with the

Commission for the next ten (10) years,

with the first report due one year after

the proposed order becomes final.

IV. Resolution of Antitrust Concerns

The Proposed Consent Order

alleviates the alleged antitrust concerns

arising from the acquisition in the

delivery of catering services to airlines

at McCarran International Airport in Las

Vegas, Nevada.

In-flight caterers provide meals and

beverages for consumption during

aircraft flights. Catering services include

the purchasing of food in accordance

with airline specifications, preparation

of meals, stocking of beverage carts,

delivery of meals and carts to the

aircraft, loading the galley, unloading of

in-coming carts, utensils and trash, and

cleaning and storage of carts and

utensils.

Both Sky Chefs and Ogden provide inflight catering services at McCarran

International Airport in Las Vegas

through their flight kitchens located at

or near that airport. McCarran

International Airport is a relevant

antitrust geographic market because

caterers at that airport could profitably

raise prices by a small but significant

and nontransitory amount without

losing enough sales to flight kitchens in

other areas to make such an increase

unprofitable. Airlines cannot

economically turn to other areas to

obtain their Las Vegas catering services

because of additional costs and quality

problems associated with flying food in

from more distant sources.

Sky Chefs and Ogden are the only

companies that sell catering services to

airlines at McCarran International

Airport. The acquisition as originally

proposed would eliminate Sky Chefs

and Ogden as independent competitors

in the provision of in-flight catering

services at McCarran International

Airport. The acquisition also would

increase the ability of the combined Sky

Chefs/Ogden business unilaterally to

raise prices and reduce the quality of

catering services at McCarran

International Airport. New entry would

not be timely, likely or sufficient to

defeat an anticompetitive price increase

or quality reduction. An entrant would

need to capture a large share of the

catering business at McCarran

International Airport in order to reach a

viable scale of operation. Such new

entry would entail substantial sunk

costs.

To remedy the potential

anticompetitive effects of the

transaction as originally proposed,

Proposed Respondents and Ogden

amended their stock purchase

agreement to exclude Ogden’s in-flight

catering assets serving the Las Vegas

airport. Subsequently, Ogden sold its

Las Vegas in-flight catering assets to

Dobbs International Services. The

Proposed Consent Order prohibits

Proposed Respondents, for ten (10)

years, from acquiring an interest in

those assets.

V. Opportunity for Public Comments

The Proposed Consent Order has been

placed on the public record for sixty

(60) days for receipt of comments by

interested persons. Comments received

during this period will become part of

the public record. After sixty (60) days,

the Commission will again review the

Proposed Consent Order and the

comments received and will decide

whether it should withdraw from the

Proposed Consent Order or make the

order final.

The purpose of this analysis is to

invite public comment on the Proposed

Consent Order to aid the Commission in

its determination of whether to make

final the Proposed Consent Order. This

analysis does not constitute an official

interpretation of the Proposed Consent

Order, nor is it intended to modify the

terms of the Proposed Consent Order in

any way.

Benjamin I. Berman,

Acting Secretary.

[FR Doc. 98–17936 Filed 7–6–98; 8:45 am]

BILLING CODE 6750–01–M

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Agency for Health Care Policy and

Research

Notice of Meeting

In accordance with section 10 (d) of

the Federal Advisory Committee Act (5

U.S.C., Appendix 2) announcement is

made of the following special emphasis

panel scheduled to meet during the

month of July 1998:

Name: Health Care Policy and Research

Special Emphasis Panel.

Date and Time: July 10, 1998 8:30 a.m.

Place: Doubletree Hotel, 1750 Rockville

Pike, Montrose Room, Rockville, Maryland

20852.

Open July 10, 8:30 a.m. to 9:00 a.m. Closed

for remainder of meeting.

Purpose: This Panel is charged with

conducting the initial review of grant

applications requesting support for small

research projects focused on the quality,

appropriateness, and effectiveness of health

care services and access to those services.

Agenda: The open session of the meeting

on July 10, from 8:30 a.m. to 9:00 a.m. will

be devoted to a business meeting covering

administrative matters. During the closed

session, the Panel will be reviewing and

discussing grant applications. In accordance

with the Federal Advisory Committee Act,

section 10(d) of 5 U.S.C., Appendix 2 and 5

U.S.C., 552b (c)(6), the Administrator,

Agency for Health Care Policy and Research,

has made a formal determination that this

latter session will be closed because the

discussions are likely to reveal personal

information concerning individuals

associated with the grant applications. This

information is exempt from mandatory

disclosure.

Anyone wishing to obtain a roster of

members, minutes of the meeting, or other

relevant information should contact Jenny

Griffith, Committee Management Officer,

Agency for Health Care Policy and Research,

Suite 400, 2101 East Jefferson Street,

Rockville, Maryland 20852, Telephone (301)

594–1455 × 1036.

Agenda items for this meeting are subject

to change as priorities dictate.

Dated: June 23, 1998.

John M. Eisenberg,

Admistrator.

[FR Doc. 98–17924 Filed 7–6–98; 8:45 am]

BILLING CODE 4160–90–M